search query: @author Hines, J.R. Jr. / total: 2
reference: 1 / 2
« previous | next »
| Author: | Dharmapala, D. Hines, J.R. Jr. |
| Title: | Which countries become tax havens? |
| Journal: | Journal of Public Economics
2009 : OCT, VOL. 93:9-10, p. 1058-1068 |
| Index terms: | foreign investment direct investment tax havens |
| Freeterms: | FDI governance quality |
| Language: | eng |
| Abstract: | This paper investigates the factors affecting whether countries become tax havens (herein as: t-hvs). Roughly 15 percent of countries are t-hvs., tending to be small and affluent ones. This paper presents another robust empirical regularity: better-governed countries are much more likely than others to become t-hvs. Governance quality has a statistically significant and quantitatively large association with the probability of being t-hvs. For a typical country with a population under 1 million, the likelihood of a becoming t-hvs. rises from 26 to 61 percent with governance quality improving from the level of Brazil to that of Portugal. Evidence from U.S. firms suggests that low tax rates offer much more powerful incentives to foreign investment in well-governed countries than do low tax rates elsewhere. This may explain why poorly-governed countries do not generally attempt to become t-hvs. etc. |
« previous | next »
SCIMA